Syrma SGS Technology Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a pretty great week for Syrma SGS Technology Limited (NSE:SYRMA) shareholders, with its shares surging 14% to ₹893 in the week since its latest quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹9.4b, statutory earnings beat expectations by a notable 33%, coming in at ₹2.79 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Syrma SGS Technology's 23 analysts are now forecasting revenues of ₹48.1b in 2026. This would be a major 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to ₹13.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹48.3b and earnings per share (EPS) of ₹13.31 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Syrma SGS Technology

The consensus price target rose 10% to ₹837despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Syrma SGS Technology's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Syrma SGS Technology at ₹1,092 per share, while the most bearish prices it at ₹555. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 33% growth on an annualised basis. That is in line with its 29% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So although Syrma SGS Technology is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Syrma SGS Technology going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Syrma SGS Technology that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.